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1 Nov 2018
Management fraud (e. g., fraudulent financial reporting) is arelatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect onshareholders, employees, and other parties. AU 240, Considerationof Fraud in a Financial Statement Audit, provides the relevantguidance for auditors.
Required:
a. What is the auditor's responsibility for detecting fraud?
b. Describe the three conditions that are generally present whenfraud occurs?
c. What are the objectives of the " brainstorming" meeting that isheld among the engagement team members?
d. What is the required documentation for identified riskfactors?
Management fraud (e. g., fraudulent financial reporting) is arelatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect onshareholders, employees, and other parties. AU 240, Considerationof Fraud in a Financial Statement Audit, provides the relevantguidance for auditors.
Required:
a. What is the auditor's responsibility for detecting fraud?
b. Describe the three conditions that are generally present whenfraud occurs?
c. What are the objectives of the " brainstorming" meeting that isheld among the engagement team members?
d. What is the required documentation for identified riskfactors?
Lelia LubowitzLv2
2 Nov 2018
